Apartment liquidity "breaks the ice" thanks to preferential policies

The dilemma of home buyers

According to survey results from market research units, the demand for buying apartments in the first months of 2023 increased significantly compared to the end of 2022.

It can be seen that the real demand for housing of the people is always present, even still high in large and densely populated cities such as Hanoi and Ho Chi Minh City. However, home buyers are facing 3 challenges: supply, selling price and financial problems.

Supply and selling price are closely related. The imbalance between supply and demand, along with many factors related to prices, land funds and legality, continue to push apartment prices to higher levels.

Specifically, in the first quarter of 2024, newly opened apartments in Hanoi decreased by 30% quarter-on-quarter while the average primary selling price reached VND52 million/ ^m2 , up 22% year-on-year despite gloomy liquidity.

By area, the West of Hanoi continues to be bustling with high-end apartment projects, with some projects having apartment prices comparable to those in central districts. For example: Masteri West Height (Tay Mo, Nam Tu Liem - primary) prices range from 60-80 million/ ^m2 ; The Zei (My Dinh - secondary) prices range from 55-80 million/ ^m2 , The Matrix One (Le Quang Dao - secondary) transfer price 52-64 million/ ^m2 .

Hoang Thanh Pearl (Nguyen Van Giap) is a rare primary project for sale in My Dinh area, offered at a price of 50-53 million/ ^m2 despite its location near The Zei and The Matrix One.

Pay off your apartment with financial incentives and buyback guarantee image 1 — High-end segment accounts for a large market share in the supply of the West Hanoi area.

About 8 minutes from My Dinh, Moonlight 1 apartment in Anlac Green Symphony Urban Area, newly opened for sale from April 2023, also has competitive prices from 39-45 million/ ^m2 .

The South of Hanoi recorded lower prices and not much improvement in supply. In Hoang Mai district, we can mention some names such as Feliz Home (primary) priced from 40 - 47 million/ ^m2 , Hanoi Melody Residences (primary) priced from 31-44 million/ ^m2 , Rose Town (primary) from 42-52 million/ ^m2 , Phuong Dong Green Park (secondary) priced from 38-44 million/ ^m2 ...

In the center of Tu Hiep Urban Area (Thanh Tri), 5 minutes from Nuoc Ngam bus station, there is Tecco Garden project, a rare primary project in the capital with a selling price of 25-28 million/ ^m2 .

At present, homebuyers do not have many options when looking to buy apartments, especially apartments with reasonable prices. Many people hope to be able to buy a house right now before prices continue to increase, but they are still worried about financial problems. Although bank loan interest rates have been adjusted down, most are still above 10%/year.

Investors launch "huge" policies to break the liquidity ice

Besides ensuring project progress, quality and legality, investors also understand that financial issues are important factors leading to customers' home buying decisions.

Therefore, some investors have launched huge stimulus policies such as direct discounts on selling prices, supporting loan disbursement with 0% interest rate for a certain period of time or even committing to buy back apartments.

In fact, these policies have actually brought good results in terms of liquidity for primary projects. Notably, the Moonlight 1 apartment building (Anlac Green Symphony) in the West of Hanoi, although it was only opened for sale at the end of April, has so far recorded about 65 transactions - an impressive number, especially in the context of the market not yet fully recovered.

Pay off your apartment with financial incentives and buyback guarantee image 2 — Moonlight 1 building has been topped out and the model floor is open for visitors to visit.

In addition to the green living space and the huge collection of utilities, Moonlight 1 also conquers customers thanks to its flexible incentive policy. Notably, the cumulative discount of up to 15% applies to the first 90 customers who book. With this policy, home buyers receive a direct discount of 500-760 million on the apartment price, suitable for those who have available finances.

In addition, there are interest rate support packages for 18-24 months; payment progress is divided into 10 installments from now until the end of 2024.

Meanwhile, customers buying Hoang Thanh Pearl apartments will receive a 2.5% discount when paying early or a 0% interest rate incentive for 12 months, receiving the house in the first quarter of 2024. Although this policy does not have a breakthrough, the project is still considered to have a good selling price compared to its potential, with expectations that there is still room for price increases.

Meanwhile, at the Tecco Garden project, the distributor Dat Xanh Mien Bac said that after only 1 month of applying the policy of committing to buy back apartments after 18 months, 35 transactions occurred, with liquidity increasing sharply compared to the previous period.

Pay off your apartment with financial incentives and buyback guarantee image 3 — Even though it has been handed over, customers who buy Tecco Garden apartments still enjoy many incentives.

Tecco Garden apartment complex has been handed over and has red books, the remaining apartments are all 3 bedroom + 1 apartments with an area of ^127-141m2 . Although the demand for large apartments is still there, the interest rate for home loans is still quite high, making customers hesitant.

To stimulate demand, the project investor has offered 3 financial support options for customers to choose from. If choosing a bank loan, home buyers will receive 0% interest support for 18 months. If cash flow is available, customers can choose to pay in installments over 24 months or pay early to receive a discount of up to 9%.

In particular, after 18 months of living, if the customer cannot afford to pay the bank interest or feels it is not suitable, they can return the house and receive the money paid back, the investor will pay the transfer fee.

With this policy, customers gain more than they lose because the initial payment when buying a Tecco Garden apartment is 40% equivalent to 1.2-1.5 billion. If you deposit it in the bank to earn interest, you will only earn about 7-8.5 million/month.

While the rental price of a 3-bedroom +1 apartment at Tecco Garden is currently around 12 million/month or more. Therefore, with an accumulated capital of 1.2 billion, customers who buy a Tecco Garden apartment at this time will have a house to live in for 18 months and will not have to bear financial risks.

In addition, Tecco Garden apartments are currently being upgraded to high-end handover standards and positioned as "sky villas" for multi-generational families and those who like spacious living spaces, so prices are expected to increase in the near future.

According to the investor's calculations, after the interest rate support period, bank interest rates have cooled down, and customers are no longer under financial pressure as before. However, if they wait until the interest rate is lowered to buy a house, it is predicted that the apartment will have established a new price range.

Source